Skip to main content
Log in

Establishing Trust during the Formation of Technology Alliances

  • Published:
The Journal of Technology Transfer Aims and scope Submit manuscript

Abstract

Technological innovation occurs as much between organizations as within. In such knowledge-sharing alliances, interorganizational issues influence the alliance in combination with interpersonal interactions. Calls for establishing trust and trustworthiness often feature in alliance research, but they can be elusive for managers. Using a case study of the formation of a technological alliance in the robotics industry, we illustrate a model and propositions focused on partner search and alliance negotiation, linking previously proposed trustworthiness categories with the concepts of organizational justice. In particular, we suggest that procedural justice in alliance formation may be more important to alliance progression than perceptions of distributive justice.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Alexander, S. and M. Ruderman, 1987, ‘The Role of Procedural and Distributive Justice in Organizational Behavior,’ Social Justice Research 1, 177-198.

    Google Scholar 

  • Barney, J. and M. Hansen, 1994, ‘Trustworthiness as a Source of Competitive Advantage,’ Strategic Management Journal 15, 175-190.

    Google Scholar 

  • Bigley, G. and J. Pearce, 1998, ‘Straining for Shared Meaning in Organization Science: Problems of Trust and Distrust,’ Academy of Management Review 23(3), 405-421.

    Google Scholar 

  • Brass, D., K. Butterfield and B. Skaggs, 1998, ‘Relationships and Unethical Behavior: A Social Network Perspective,’ Academy of Management Review 23(1), 14-31.

    Google Scholar 

  • Brockner, J. and P. Siegel, 1996, ‘Understanding the Interaction Between Procedural and Distributive Justice: The Role of Trust,’ in R.M. Kramer and T.R. Tyler (eds.), Trust in Organizations: Frontiers of Theory and Research, Thousand Oaks: Sage, pp. 390-413.

    Google Scholar 

  • Casson, M., 1991, Global Research Strategy and International Competitiveness, Oxford: Blackwell.

    Google Scholar 

  • Chan, M., 1997, ‘Some Theoretical Propositions Pertaining to the Context of Trust,’ The International Journal of Organizational Analysis 5, 227-248.

    Google Scholar 

  • Creed, W. and R. Miles, 1996, ‘Trust in Organizations: A Conceptual Framework Linking Organizational Forms, Managerial Philosophies, and the Opportunity Costs of Controls,’ in R.M. Kramer and T.R. Tyler (eds.), Trust in Organizations: Frontiers of Theory and Research, Thousand Oaks: Sage, pp. 16-38.

    Google Scholar 

  • Das, T. and B.-S. Teng, 1998, ‘Between Trust and Control: Developing Confidence in Partner Cooperation in Alliances,’ Academy of Management Review 23(3), 491-512.

    Google Scholar 

  • Doz, Y., 1996, ‘The Evolution of Cooperation in Strategic Alliances: Initial Conditions or Learning Processes,’ Strategic Management Journal 17 (Summer), 55-83.

    Google Scholar 

  • Duysters, G., G. Kok, and M. Vaandrager, 1999, ‘Crafting Successful Strategic Technology Partnerships,’ R&D Management 29(4), 343-351.

    Google Scholar 

  • Flores, F. and R. Solomon, 1998, ‘Creating Trust,’ Business Ethics Quarterly 8(2), 205-232.

    Google Scholar 

  • Gambetta, D., 1988, ‘Can We Trust Trust?’ in D. Gambetta (ed.), Trust: Making and Breaking Cooperative Relations, New York: Blackwell, pp. 213-237.

    Google Scholar 

  • Ghoshal, S. and P. Moran, 1996, ‘Bad for Practice: A Critique of the Transaction Cost Theory,’ Academy of Management Review 21(1), 13-47.

    Google Scholar 

  • Gulati, R., 1995, ‘Does Familiarity Breed Trust? The Implications of Repeated Ties for Contractual Choice of Alliances,’ Academy of Management Journal 38(1), 85-112.

    Google Scholar 

  • Gulati, R., 1999, ‘Network Location and Learning: The Influence of Network Resources and Firm Capabilities on Alliance Formation,’ Strategic Management Journal 20(5), 397-420.

    Google Scholar 

  • Gulati, R. and M. Gargiulo, 1999, ‘Where do Interorganizational Networks come from?’ American Journal of Sociology 104(5), 1439-1493.

    Google Scholar 

  • Hagedoorn, J., 1996, ‘Trends and Patterns in Strategic Technology Partnering since the early Seventies,’ Review of Industrial Organization 11, 601-616.

    Google Scholar 

  • Hagedoorn, J., A. Link, and N. Vonortas, 2000, ‘Research Partnerships,’ Research Policy 29, 567-586.

    Google Scholar 

  • Hagen, J. and S. Choe, 1998, ‘Trust in Japanese Interfirm Relations: Institutional Sanctions Matter,’ Academy of Management Review 23(3), 589-600.

    Google Scholar 

  • Hamel, G., 1991, ‘Competition for Competence and Inter-Partner Learning within International Strategic Alliances,’ Strategic Management Journal 12 (Summer), 83-103.

    Google Scholar 

  • Hill, C., 1990, ‘Cooperation, Opportunism and the Invisible Hand: Implications for Transaction Cost Theory,’ Academy of Management Review 15(3), 500-513.

    Google Scholar 

  • Howells, J., 1990, ‘The Internationalization of R&D and the Development of Global Research Networks,’ Regional Studies 24(6), 495-512.

    Google Scholar 

  • Hubbard, G., A. Morkel, S. Davenport, and P. Beamish, 1999, ‘The Shiny Robot Venture,’ in Cases in Strategic Management: Australia and New Zealand, Frenchs Forest, Australia: Prentice Hall, pp. 201-213.

    Google Scholar 

  • James. H., 2002, ‘The Trust Paradox: A Survey of Economic Enquiries into the Nature of Trust and Trustworthiness,’ Journal of Economic Behavior & Organization 47, 291-307.

    Google Scholar 

  • Jones, G. and J. George, 1998, ‘The Experience and Evolution of Trust: Implications for Cooperation and Teamwork,’ Academy of Management Review 23(3), 531-546.

    Google Scholar 

  • Kahneman, D. and D. Lovello, 1993, ‘Timid Choices and Bold Forecasts: A Cognitive Perspective on Risk Taking,’ Management Science 39(1), 17-31.

    Google Scholar 

  • Kim, W.C. and R. Mauborgne, 1997, ‘Fair Process: Managing in the Knowledge Economy,’ Harvard Business Review 75(4), 65-75.

    Google Scholar 

  • Kim, W.C. and R. Mauborgne, 1998, ‘Procedural Justice, Strategic Decision Making, and the Knowledge Economy,’ Strategic Management Journal 19(4), 323-338.

    Google Scholar 

  • Korine, H., 1998, ‘Procedural Justice and Performance in Innovation Teams,’ Strategic Leadership Research Program Working Paper, WP41, London Business School.

  • Koza, M. and A. Lewin, 1998, ‘The Co-evolution of Strategic Alliances,’ Organization Science 9(3), 255-264.

    Google Scholar 

  • Kumar, R. and K. Nti, 1998, ‘Differential Learning and Interaction in Alliance Dynamics: A Process and Outcome Discrepancy Model,’ Organization Science 9(3), 356-367.

    Google Scholar 

  • Larson, A., 1992, ‘Network Dyads in Entrepreneurial Settings: A Study of the Governance of Exchange Relationships,’ Administrative Science Quarterly 37, 76-104.

    Google Scholar 

  • Larsson, B., L. Bengtsson, K. Henriksson, and J. Sparks, 1998, ‘The Interorganizational Learning Dilemma: Collective Knowledge Development in Strategic Alliances,’ Organization Science 9(3), 285-305.

    Google Scholar 

  • Levinthal, D. and J. March, 1993, ‘The Myopia of Learning,’ Strategic Management Journal 14(1), 95-112.

    Google Scholar 

  • Leyden, D. and A. Link, 1999, ‘Federal Laboratories as Research Partners,’ International Journal of Industrial Organization 17, 575-592.

    Google Scholar 

  • Lind, E. and T. Tyler, 1988, The Social Psychology of Procedural Justice, New York: Plenum Press.

    Google Scholar 

  • McFarlin, D. and P. Sweeney, 1992, ‘Distributive and Procedural Justice as Predictors of Satisfaction with Personal and Organizational Outcomes,’ Academy of Management Journal 35(3), 626-637.

    Google Scholar 

  • McKnight, D., L. Cummings, and N. Chervany, 1998, ‘Initial Trust Formation in New Organizational Relationships,’ Academy of Management Review 23(3), 473-490.

    Google Scholar 

  • Miller, D., 1993, ‘The Architecture of Simplicity,’ Academy of Management Review 18(1), 116-138.

    Google Scholar 

  • Mohr, J. and R. Spekman, 1994, ‘Characteristics of Partnership Success: Partnership Attributes, Communication and Conflict Resolution Techniques,’ Strategic Management Journal 15(2), 135-152.

    Google Scholar 

  • Morgan, R. and S. Hunt, 1994, ‘The Commitment Trust Theory of Relationship Marketing,’ Journal of Marketing 58 (July), 20-38.

    Google Scholar 

  • Mytelka, L., 1991, Strategic Partnerships: States, Firms and International Competition, London: Pinter Publishers.

    Google Scholar 

  • Pearce, J., G. Bigley, and I. Branyiczki, 1998, ‘Procedural Justice as Modernism: Placing Industrial/Organizational Psychology in Context,’ Applied Psychology: An International Review 47(3), 371-396.

    Google Scholar 

  • Powell, W., K. Koput, and L. Smith-Doerr, 1996, ‘Interorganizational Collaboration and the Locus of Innovation: Networks of Learning in Biotechnology,’ Administrative Science Quarterly 41, 116-145.

    Google Scholar 

  • Reardon, K. and R. Spekman, 1994, ‘Starting Out Right: Negotiation Lessons for Domestic and Cross-Culture Business Alliances,’ Business Horizons 37(1), 71-79.

    Google Scholar 

  • Ring, P. and A. van de Ven, 1994, ‘Developmental Processes of Cooperative Interorganizational Relationships,’ Academy of Management Review 19(1), 90-188.

    Google Scholar 

  • Robbins, T., T. Summers, and J. Miller, 2000, ‘Intra-and Inter-Justice Relationships: Assessing the Direction,’ Human Relations 53(10), 1329-1355.

    Google Scholar 

  • Russo, J. and P. Schoemaker, 1992, ‘Managing Overconfidence,’ Sloan Management Review Winter, 7-17.

  • Saxton, T., 1997, ‘The Effects of Partner and Relationship Characteristics on Alliance Outcomes,’ Academy of Management Journal 40(2), 443-461.

    Google Scholar 

  • Shan, W., G. Walker, and B. Kogut, 1994, ‘Interfirm Cooperation and Startup Innovation in the Biotechnology Industry,’ Strategic Management Journal 15(5), 387-394.

    Google Scholar 

  • Shapiro, D., B. Sheppard, and L. Chersakin, 1992, ‘In Theory: Business on a Handshake,’ Negotiation Journal 8, 365-377.

    Google Scholar 

  • Sheppard, B. and D. Sherman, 1998, ‘The Grammars of Trust: A Model and General Implications,’ Academy of Management Review 23(3), 422-437.

    Google Scholar 

  • Sitkin, S. and N. Roth, 1993, ‘Explaining the Limited Effectiveness of Legalistic “Remedies” for Trust/Distrust,’ Organization Science 4(3), 367-392.

    Google Scholar 

  • Spekman, R., T. Forbes, L. Isabella, and T. MacAvoy, 1998, ‘Alliance Management: A View from the Past and a Look to the Future,’ Journal of Management Studies 35(6), 747-772.

    Google Scholar 

  • Tyler, T. and R. Kramer, 1996, ‘Whither Trust?’ in R.M. Kramer and T.R. Tyler (eds.), Trust in Organizations: Frontiers of Theory and Research, Thousand Oaks: Sage, pp. 1-15.

    Google Scholar 

  • Welbourne, T., 1998, ‘Untangling Procedural and Distributive Justice: Their Relative Effects on Gainsharing Satisfaction,’ Group and Organization Management 23(4), 325-346.

    Google Scholar 

  • Williams, M., 2001, ‘In whom we Trust: Group Membership as an Affective Context for Trust Development,’ Academy of Management Review 26(3), 377-396.

    Google Scholar 

  • Zaheer, A., B. McEvily, and V. Perrone, 1998, ‘Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance,’ Organization Science 9(2), 141-159.

    Google Scholar 

  • Zucker, L., 1986, ‘Production of Trust: Institutional Sources of Economic Structure, 1840–1920,’ Research in Organizational Behavior 8, 53-11.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Daellenbach, U.S., Davenport, S.J. Establishing Trust during the Formation of Technology Alliances. The Journal of Technology Transfer 29, 187–202 (2004). https://doi.org/10.1023/B:JOTT.0000019537.61121.c3

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/B:JOTT.0000019537.61121.c3

Keywords

Navigation